DIFFERENCE IN CONDITIONS

Transcription

1 Page 1 of 7 Companion Specialty Insurance Company DIFFERENCE IN CONDITIONS POLICY Companion Specialty Insurance Company P.O. Box Columbia, SC COMPANION mnop ca

2 Page 2 of 7 IN WITNESS WHEREOF, the Companion Specialty Insurance Company has caused this policy to be signed by its President and Secretary at Columbia, South Carolina, and countersigned on the declarations page by a duly Authorized Agent of the Company. Duncan McIntosh, Secretary Charles M. Potok, President mnop ca

3 Page 3 of 7 COMMERICAL DIFFERENCE IN CONDITIONS DECLARATION Policy Number: FDA New Business Inception Date: 1/1/2012 Expiration Date: 1/1/ :01 AM Standard Time at the address of the insured as stated herein. Named Insured and Address SOMERSET AT WINDSTAR HOMEOWNERS ASSOCIATION, INC COLLIER CENTER WAY, #102 NAPLES, FL Producing Agency Name and Address Insurance and Risk Management Services, Inc Fontana Del Sol Way, Suite 200 Naples, FL This policy consists of the following coverage parts for which a premium is indicated. The premium may be subject to audit by the company. Coverage(s) Included in Policy Differences In Conditions Mold Remediation & Sewer Backup Premium Included Excluded Annual Policy Premium: $5, Fees Policy Fee $35.00 Surplus Lines Tax $ FSLSO Service Fee $5.47 FHCF Fee $71.12 CPIC Emergency Assessment Fee $0.00 EMPA Fee $0.00 Total Annual Premium and Fees: $5, In Return For The Payment Of The Premium, And Subject To All The Terms Of This Policy, We Agree With You To Provide The Insurance As Stated In This Policy. This Policy Supercedes Any Previous Policy Bearing The Same Number And Policy Period. "SURPLUS LINES INSURERS' POLICY RATES AND FORMS ARE NOT APPROVED BY ANY FLORIDA REGULATORY AGENCY." Payment Method: This is an agency bill policy. Premium payable at inception: Annual countersigned this 1 day of January, 2012 ISSUED Issuing office - Columbia, SC Authorized Representative CCP Issue Date: 12/30/2011

4 Page 4 of 7 POLICY LOCATION SCHEDULE Policy Number: FDA Policy Period: 1/1/2012 To: 1/1/2013 Named Insured: SOMERSET AT WINDSTAR HOMEOWNERS ASSOCIATION, INC. LOCATIONS OF ALL PREMISES YOU OWN, RENT, OR OCCUPY Bldg # Address City State Zip Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL Paget Circle Naples FL CCP Issue Date: 12/30/2011

5 Page 5 of 7 Commercial Difference in Conditions Coverage Part Declaration - Coverages Provided Policy Number: FDA Policy Period: 1/1/2012 To: 1/1/2013 Named Insured: SOMERSET AT WINDSTAR HOMEOWNERS ASSOCIATION, INC. COVERAGES PROVIDED AND DESCRIPTION OF PREMISES: INSURANCE AT THE DESCRIBED PREMISES APPLIES ONLY FOR THE COVERAGES SHOWN BELOW Bldg # Building Desc. Coverage Limit of Insurance 1 Residential Building Building $578,616 2 Residential Building Building $649,363 3 Residential Building Building $578,616 4 Residential Building Building $560,123 5 Residential Building Building $549,363 6 Residential Building Building $560,123 7 Residential Building Building $560,123 8 Residential Building Building $578,616 9 Residential Building Building $549, Residential Building Building $578, Residential Building Building $567, Residential Building Building $560, Residential Building Building $567, Residential Building Building $560, Residential Building Building $567, Residential Building Building $578, Residential Building Building $567, Residential Building Building $567, Residential Building Building $567, Residential Building Building $578, Residential Building Building $549, Residential Building Building $578, Residential Building Building $567, Residential Building Building $560, Residential Building Building $567, Bath/Pool House Building $46, Pool Building $52, Pool Building $13,639 CCP Issue Date: 12/30/2011

6 Page 6 of 7 Description Amount Covered Cause Special, Excluding Basic Perils Wind/Hail Excluded Earthquake and Volcanic Eruption Endorsement Excluded Valuation Replacement Cost Agreed Amount Included Deductible $2,500 Inflation Guard 0% Terrorism Included Optional Coverage: Mold Remediation/Sewer Backup Amount Excluded

7 Page 7 of 7 Policy Number: FDA Policy Period: 1/1/2012 To: 1/1/2013 Named Insured: SOMERSET AT WINDSTAR HOMEOWNERS ASSOCIATION, INC. POLICY FORMS DECLARATIONS Form Number Form Date Form Description CIU0100FL 03/08 Surplus Lines Statement IL /02 Calculation of Premium IL /98 Common Policy Conditions IH /09 Difference in Conditions Coverage Form CM /04 Commercial Inland Marine Conditions CM /00 FL Changes - Loss Payment IL /02 FL Changes - Legal Action IL /02 FL Changes - Cancellation SIM001 10/10 Collapse Additional Coverage SIM003 10/10 Earth Movement Exclusion SIM014 12/10 Ordinance or Law Specified Perils SIM004 10/10 Exclusion of Water SIM005 10/10 Exclusion of Water Backup IL /07 Conditional Exclusion of Terrorism IL /07 Cap on Losses from Certified Acts of Terrorism TPN006 01/09 Notice of Terrorism Insurance Coverage SIM007 10/10 Mediation SIM008 10/10 Occurrence Limit of Liability SIM009 10/10 Existing Damage Exclusion IH /99 Exclusion of Property In Transit IL /01 Exclusion of Certain Computer Related Losses SIM012 6/11 Exclusion of Fungi, Wet or Dry Rot Microbes

8 SURPLUS LINES STATEMENT Policy Number FDA Insured Name SOMERSET AT WINDSTAR HOMEOWNERS ASSOCIATION, INC. Producer: Coastal Insurance Underwriters, Inc. Premium: $ P.O. Box 3140 Policy Fee: $ Ponte Vedra Beach, FL S/L Tax: $ FSLSO Service Fee: $ Surplus Lines Agent: Faye Leto FHCF: $ P.O. Box 3140 CPIC Emergency Assessment: $ Ponte Vedra Beach, FL EMPA: $ License #: A Total: $ 5, , Producing Agent: SAMUEL R. NEIDIGH, ARM 8950 Fontana Del Sol Way, Suite 200 Naples, FL A THIS INSURANCE IS ISSUED PURSUANT TO THE FLORIDA SURPLUS LINES LAW. PERSONS INSURED BY SURPLUS LINES CARRIERS DO NOT HAVE THE PROTECTION OF THE FLORIDA INSURANCE GUARANTY ACT TO THE EXTENT OF ANY RIGHT OF RECOVERY FOR THE OBLIGATION OF AN INSOLVENT UNLICENSED INSURER. Date: 12/30/2011 Surplus Lines Agent CIU 0100FL 03/08

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11 COMMERCIAL INLAND MARINE IH DIFFERENCE IN CONDITIONS COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy, the words "you" and "your" refer to the Named Insured shown in the Declarations. The words "we", "us" and "our" refer to the Company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to Section G. Definitions. A. Coverage We will pay for loss of or damage to Covered Property from any of the Covered Causes of Loss. 1. Covered Property Covered Property, as used in this coverage form, means the type of property described in this Paragraph, A.1., and limited in Paragraph A.2. Property Not Covered, if a Limit of Insurance is shown in the Declarations for that type of property: a. Building, meaning the building or structure described in the Declarations including: (1) Completed additions; (2) Fixtures, including outdoor fixtures; (3) Permanently installed machinery and equipment; (4) Personal property owned by you that is used to maintain or service the building or structure or its premises, including: (a) Fire extinguishing equipment; (b) Outdoor furniture; (c) Floor coverings; and (d) Appliances used for refrigerating, ventilating, cooking, dishwashing or laundering; and (5) If not covered by other insurance: (a) Additions under construction, alterations and repairs to the building or structure; and (b) Materials, equipment, supplies and temporary structures, on or within 100 feet of the described premises, used for making additions, alterations or repairs to the building or structure. b. Your Business Personal Property: (1) While in transit; or (2) Located in or on the building described in the Declarations or in the open (or within a vehicle) within 100 feet of the described premises, consisting of the following unless otherwise specified in the Declarations: (a) Furniture and fixtures; (b) Machinery and equipment; (c) "Stock"; (d) All other personal property owned by you and used in your business; (e) Labor, materials or services furnished or arranged by you on personal property of others; (f) Your use interest as tenant in improvements and betterments. Improvements and betterments are fixtures, alterations, installations or additions: (i) Made a part of the building or structure you occupy but do not own; and (ii) You acquired or made at your expense but cannot legally remove; and (g) Leased personal property for which you have a contractual responsibility to insure, unless otherwise provided for under Personal Property of Others. c. Personal property of others that is: (1) In your care, custody or control; and (2) Located in or on the building described in the Declarations or in the open (or in a vehicle) within 100 feet of the described premises. However, our payment for loss of or damage to personal property of others will only be for the account of the owner of the property. IH Insurance Services Office, Inc., 2009 Page 1 of 9

12 2. Property Not Covered Covered Property does not include: a. Accounts, bills, currency, deeds, food stamps or other evidences of debt, money, notes or securities. Lottery tickets held for sale are not securities; b. Animals, unless owned by others and boarded by you, or if owned by you, only as "stock" while inside of buildings; c. Automobiles held for sale; d. Bridges, roadways, walks, patios or other paved surfaces; e. Contraband, or property in the course of illegal transportation or trade; f. The cost of excavations, grading, backfilling or filling; g. Foundations of buildings, structures, machinery or boilers if their foundations are below: (1) The lowest basement floor; or (2) The surface of the ground, if there is no basement; h. Land (including land on which the property is located), water, growing crops or lawns; i. Personal property while airborne or waterborne; j. Bulkheads, pilings, piers, wharves or docks; k. Property that is covered under another coverage form of this or any other policy in which it is more specifically described, except for the excess of the amount due (whether you can collect on it or not) from that other insurance; l. Retaining walls that are not part of a building; m. Underground pipes, flues or drains; n. Vehicles or self-propelled machines (including aircraft or watercraft) that are licensed for use on public roads or are operated principally away from the described premises. This paragraph does not apply to: (1) Vehicles or self-propelled machines or autos you manufacture, process or warehouse; (2) Vehicles or self-propelled machines, other than autos, you hold for sale; or (3) Rowboats or canoes out of water at the described premises; or o. The following property while outside of buildings: (1) Grain, straw or other crops; or (2) Fences, radio or television antennas (including satellite dishes) and their lead-in wiring, masts or towers, signs (other than signs attached to buildings), trees, shrubs or plants (other than "stock" of trees, shrubs or plants). 3. Covered Causes Of Loss Covered Causes of Loss means Direct Physical Loss Or Damage to Covered Property except those causes of loss listed in the Exclusions. 4. Additional Coverages a. Debris Removal (1) We will pay your expenses to remove debris of Covered Property caused by or resulting from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date of direct physical loss or damage. (2) The amount we pay for the direct physical loss or damage to Covered Property is 25% of: (a) The amount we pay for the direct physical loss or damage to Covered Property; plus (b) The deductible in this policy applicable to that loss or damage. (3) This Additional Coverage does not apply to costs to: (a) Extract "pollutants" from land or water; or (b) Remove, restore or replace polluted land or water. b. Fire Department Service Charge When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, we will pay up to $1,000 for your liability for fire department service charges: (1) Assumed by contract or agreement prior to loss; or (2) Required by local ordinance. No Deductible applies to this Additional Coverage. Page 2 of 9 Insurance Services Office, Inc., 2009 IH

13 c. Preservation Of Property If it is necessary to move Covered Property from the described premises to preserve it from loss or damage by a Covered Cause of Loss, we will pay for any direct physical loss or damage to that property: (1) While it is being moved or while temporarily stored at another location; and (2) Only if the loss or damage occurs within 30 days after the property is first moved. d. Pollutant Cleanup And Removal We will pay your expenses to extract "pollutants" from land or water at the described premises if the discharge, dispersal, seepage, migration, release or escape of the "pollutants" is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date on which the Covered Cause of Loss occurs. This Additional Coverage does not apply to costs to test for, monitor or assess the existence, concentration or effects of "pollutants". But we will pay for testing which is performed in the course of extracting the "pollutants" from the land or water. The most we will pay under this Additional Coverage for each described premises is $10,000 for the sum of all such expenses arising out of Covered Causes of Loss occurring during each separate 12-month period of this policy. The limit for this Additional Coverage is in addition to the Limit of Insurance. e. Limited Coverage For "Fungi", Wet Rot And Dry Rot (1) The coverage described in Paragraphs (2) and (5) only applies when "fungi", or wet or dry rot is the result of one or more of the Covered Causes of Loss, except fire or lightning, that occur during the policy period and only if all reasonable means were used to save and preserve the property from further damage at the time of and after the time of the occurrence. (2) We will pay for loss or damage to Covered Property by "fungi", or wet or dry rot. As used in this Limited Coverage, the term loss or damage means: (a) Direct physical loss or damage to Covered Property caused by "fungi", or wet or dry rot, including the cost of removal of the "fungi", or wet or dry rot; (b) The cost to tear out and replace any part of the building or other property as needed to gain access to the "fungi", or wet or dry rot; and (c) The cost of testing performed after removal, repair, replacement or restoration of the damaged property is completed, provided there is a reason to believe that "fungi", or wet or dry rot is present. (3) Unless a higher Limit of Insurance for this coverage is shown in the Declarations, the most we will pay is $15,000 for loss or damage to Covered Property. Regardless of the number of claims, this Limit of Insurance is the most we will pay for the total of all loss or damage arising out of all occurrences of Covered Causes of Loss (other than fire or lightning) which take place in a 12- month period (starting with the beginning of the present annual policy period). With respect to a particular occurrence of loss which results in "fungi", or wet or dry rot, we will not pay more than a total of $15,000 even if the "fungi", or wet or dry rot continues to be present or active, or recurs, in a later policy period. If the Declarations indicate that the Separate Locations Option applies, then the amount of coverage ($15,000, unless a higher amount is shown in the Declarations) is made applicable to separate locations as described in the Declarations. For each location so described, the amount of coverage is an annual aggregate limit, subject to the terms set forth above in this Paragraph (3). IH Insurance Services Office, Inc., 2009 Page 3 of 9

14 (4) The coverage provided under this Limited Coverage does not increase the applicable Limit of Insurance on any Covered Property. If a particular occurrence results in loss or damage by "fungi", or wet or dry rot, and other loss or damage, we will not pay more, for the total of all loss or damage, than the applicable Limit of Insurance on the affected Covered Property. If there is covered loss or damage to Covered Property, not caused by "fungi", or wet or dry rot, loss payment will not be limited by the terms of this Limited Coverage, except to the extent that "fungi", or wet or dry rot causes an increase in the loss. Any such increase in the loss will be subject to the terms of this Limited Coverage. (5) The following, (5)(a) or (5)(b), applies only if Business Income and/or Extra Expense Coverage applies and only if the suspension of "operations" satisfies all terms and conditions of the applicable Business Income and/or Extra Expense Coverage Form. (a) If the loss which resulted in "fungi", or wet or dry rot does not in itself necessitate a suspension of "operations" but such suspension is necessary due to loss or damage to property caused by "fungi", or wet or dry rot, then our payment under Business Income and/or Extra Expense is limited to the amount of loss and/or expense sustained in a period of not more than 30 days, or the number of days shown in the Declarations. The days need not be consecutive. (b) If a covered suspension of "operations" was caused by loss or damage other than "fungi", or wet or dry rot but remediation of "fungi", or wet or dry rot prolongs the "period of restoration", we will pay for loss and/or expense sustained during the delay (regardless of when such a delay occurs during the "period of restoration"), but such coverage is limited to 30 days, or the number of days shown in the Declarations. The days need not be consecutive. 5. Coverage Extensions a. Newly Acquired Or Constructed Property (1) You may extend the insurance that applies to building to apply to: (a) Your new building while being built on the described premises; and (b) Buildings you acquire at locations, other than the described premises, intended for: (i) Similar use as the building described in the Declarations; or (ii) Use as a warehouse. The most we will pay for loss or damage under this Extension is $250,000 at each building. (2) You may extend the insurance that applies to your Business Personal Property to apply to that property at any location you acquire other than at fairs or exhibitions. The most we will pay for loss or damage under this Extension is $100,000 at each building. (3) Insurance under this Extension for each newly acquired or constructed property will end when any of the following first occurs: (a) This policy expires; (b) 30 days expire after you acquire or begin to construct the property; or (c) You report values to us. We will charge you additional premium for values reported from the date construction begins or you acquire the property. b. Valuable Papers And Records Cost Of Research Except as otherwise provided, this Extension applies to property located in or on the building described in the Declarations or in the open (or in a vehicle) within 100 feet of the described premises. Page 4 of 9 Insurance Services Office, Inc., 2009 IH

15 You may extend the insurance that applies to your Business Personal Property to apply to your costs to research, replace or restore the lost information on lost or damaged valuable papers and records, including those which exist on electronic or magnetic media, for which duplicates do not exist. The most we will pay under this Extension is $2,500 at each described premises, unless a higher limit is shown in the Declarations. B. Exclusions 1. We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss or damage. a. Governmental Action Seizure or destruction of property by order of governmental authority. b. Nuclear Hazard Nuclear reaction or radiation, or radioactive contamination, however caused. c. War And Military Action (1) War, including undeclared or civil war; (2) Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or (3) Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these. d. Fungi, Wet Rot And Dry Rot Presence, growth, proliferation, spread or any activity of "fungi", or wet or dry rot. But if "fungi", or wet or dry rot results in a Covered Cause of Loss, we will pay for the loss or damage caused by that Covered Cause of Loss. This exclusion does not apply: (1) When "fungi", or wet or dry rot results from fire or lightning; or (2) To the extent that coverage is provided in the Additional Coverage Limited Coverage For "Fungi", Wet Rot And Dry Rot with respect to loss or damage by a cause of loss other than fire or lightning. e. Virus, Bacterium Or Other Microorganism Any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or disease. However, this exclusion does not apply to loss or damage caused by or resulting from "fungi", wet rot or dry rot. Such loss or damage is addressed in the previous exclusion. The terms of this exclusion, or the inapplicability of this exclusion to a particular loss, does not serve to create coverage for any loss that would otherwise be excluded under this Coverage Part. This exclusion applies to all coverage under all forms and endorsements that comprise this Coverage Part, including but not limited to forms or endorsements that cover business income, extra expense or action of civil authority. Exclusions B.1.a. through B.1.e. apply whether or not the loss event results in widespread damage or affects a substantial area. 2. We will not pay for loss or damage caused by or resulting from any of the following: a. Fire, lightning, windstorm, hail or any other cause of loss if the cause of loss is covered by the Underlying Policy(ies) described in the Declarations; except this exclusion does not apply to any cause of loss specified in the Declarations to be excess insurance. When a cause of loss is specified as excess insurance, coverage is excess of coverage provided by the Underlying Policy(ies), whether that insurance is collectible or not. b. Explosion of steam boilers, steam pipes, steam engines or steam turbines owned or leased by you, or operated under your control. c. Delay, loss of use, loss of market or any other consequential loss. d. Mechanical breakdown. e. Artificially generated electrical, magnetic or electromagnetic energy that damages, disturbs, disrupts or otherwise interferes with any: (1) Electrical or electronic wire, device, appliance, system or network; or (2) Device, appliance, system or network utilizing cellular or satellite technology. IH Insurance Services Office, Inc., 2009 Page 5 of 9

16 For the purpose of this exclusion, electrical, magnetic or electromagnetic energy includes, but is not limited to, electrical current, including arcing; electrical charge produced or conducted by a magnetic or electromagnetic field; pulse of electromagnetic energy; electromagnetic waves or microwaves. f. Wear and tear; rust, corrosion, fungus, decay, deterioration, hidden or latent defect or any quality in the property that causes it to damage or destroy itself. g. Settling, cracking, shrinkage or expansion. h. Shortage found upon taking inventory. i. Unexplained disappearance. j. Marring or scratching of personal property. k. Nesting or infestation, or discharge or release of waste products or secretions by insects, vermin, birds, rodents or other animals. l. Dishonest or criminal act committed by: (1) You, any of your partners, employees, directors, trustees, or authorized representatives; (2) A manager or a member if you are a limited liability company; (3) Anyone else with an interest in the property, or their employees or authorized representatives; or (4) Anyone else to whom the property is entrusted for any purpose. This exclusion applies whether or not such persons are acting alone or in collusion with other persons or such acts occur during the hours of employment. m. Voluntary parting with any property by you or anyone entrusted with the property if induced to do so by any fraudulent scheme, trick, device or false pretense. n. Unauthorized instructions to transfer property to any person or to any place. o. Rain, snow, ice or sleet to personal property in the open. p. Discharge, dispersal, seepage, migration, release or escape of "pollutants" unless the discharge, dispersal, seepage, migration, release or escape is itself caused by any of the Covered Causes of Loss. But if the discharge, dispersal, seepage, migration, release or escape of "pollutants" results in a Covered Cause of Loss not otherwise excluded, we will pay for the loss or damage caused by that Covered Cause of Loss. q. Neglect of an insured to use all reasonable means to save and preserve property from further damage at and after the time of loss. 3. We will not pay for loss or damage caused by or resulting from any of the following. But if loss or damage by a Covered Cause of Loss results, we will pay for the loss or damage caused by that Covered Cause of Loss. a. Acts or decisions, including the failure to act or decide of any person, group, organization or governmental body. b. Faulty, inadequate or defective: (1) Planning, zoning, development, surveying, siting; (2) Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction; (3) Materials used in repair, construction, renovation or remodeling; or (4) Maintenance; of part or all of any property wherever located. c. Rust or other corrosion, dampness, dryness or extremes of temperature. 4. The cost to research, replace or restore the information on valuable papers and records, including those which exist on electronic or magnetic media, except as provided in the Coverage Extension. C. Limits Of Insurance The most we will pay for loss or damage in any one occurrence is the applicable Limit of Insurance shown in the Declarations. 1. Separate Limits of Insurance are shown in the Declarations for Earthquake and "Water Damage". 2. The limits applicable to: a. The Coverage Extensions; and b. Additional Coverage A.4.d. Pollutant Cleanup And Removal; are in addition to the Limit of Insurance. 3. Payments under the following Additional Coverages will not increase the applicable Limit of Insurance: a. Debris Removal A.4.a., but if: (1) The sum of direct physical loss or damage and debris removal expense exceeds the Limit of Insurance; or Page 6 of 9 Insurance Services Office, Inc., 2009 IH

17 (2) The debris removal expense exceeds the amount payable under the 25% limitation in the Debris Removal Additional Coverage; we will pay up to an additional $10,000 for each location in any one occurrence under the Debris Removal Additional Coverage. b. Fire Department Service Charge A.4.b.; or c. Preservation Of Property A.4.c. D. Deductible We will not pay for loss or damage in any one occurrence until the amount of the adjusted loss or damage before applying the applicable Limits of Insurance exceeds the Deductible shown in the Declarations. We will then pay the amount of the adjusted loss or damage in excess of the Deductible, up to the applicable Limit of Insurance. Specific deductibles apply to: 1. "Water Damage"; and 2. Earthquake. All earthquake shocks that occur within a 168- hour period following the earthquake will constitute a single earthquake occurrence. E. Additional Conditions 1. The Valuation General Condition in the Commercial Inland Marine Conditions is replaced by the following: We will determine the value of Covered Property in the event of loss or damage as follows: a. At actual cash value as of the time of loss or damage, except as provided in Paragraphs b., c., d., e. and f. below. b. If the cost to repair or replace the damaged building is $2,500 or less, we will pay the cost of building repairs or replacement. The cost of building repairs or replacement does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property. However, the following property will be valued at the actual cash value even when attached to the building: (1) Awnings or floor coverings; (2) Appliances for refrigerating, ventilating, cooking, dishwashing or laundering; or (3) Outdoor equipment or furniture. c. "Stock" you have sold but not delivered at the selling price less discounts and expenses you otherwise would have had. d. Glass at the cost of replacement with safety glazing material if required by law. e. Tenants' Improvements and Betterments at: (1) Actual cash value of the lost or damaged property if you make repairs promptly. (2) A proportion of your original cost if you do not make repairs promptly. We will determine the proportionate value as follows: (a) Multiply the original cost by the number of days from the loss or damage to the expiration of the lease; and (b) Divide the amount determined in Paragraph (a) by the number of days from the installation of improvements to the expiration of the lease. If your lease contains a renewal option, the expiration of the renewal option period will replace the expiration of the lease in the procedure. (3) Nothing if others pay for repairs or replacement. f. Valuable Papers and Records, including those which exist on electronic or magnetic media (other than prepackaged software programs), at the cost of: (1) Blank materials for reproducing the records; and (2) Labor to transcribe or copy the records when there is a duplicate; except as provided in the Coverage Extension. 2. The following conditions apply in addition to the Commercial Inland Marine Conditions and the Common Policy Conditions: a. Underlying Insurance (1) The insurance afforded by each policy of underlying insurance described in the Declarations will be maintained for the full term of this insurance. As each policy expires you will renew it at limits and for causes of loss equal to or greater than the expiring limits and causes of loss. (2) If you fail to comply with the provisions in Paragraph (1), we will pay only to the extent that we would have paid had you complied with the requirements in Paragraph (1). b. Coverage Territory We cover property wherever located within: (1) The United States of America (including its territories and possessions); IH Insurance Services Office, Inc., 2009 Page 7 of 9

18 (2) Puerto Rico; and (3) Canada. c. Protective Safeguards You must maintain the protective safeguards stated by you to be in effect at a location when this coverage began. If you fail to keep the protective safeguards: (1) In working condition at a location; and (2) In operation when you are closed to business; coverage for which the protective safeguards apply is automatically suspended at that location. This suspension will last until equipment or services are back in operation. F. Optional Coverage Replacement Cost 1. Replacement Cost (without deduction for depreciation) replaces Actual Cash Value in the Valuation General Condition of the Commercial Inland Marine Conditions. 2. This Optional Coverage does not apply to: a. Personal property of others; b. Contents of a residence; c. Manuscripts; d. Works of art, antiques or rare articles, including etchings, pictures, statuary, marbles, bronzes, porcelains and bric-a-brac; or e. "Stock", unless the including "stock" option is shown in the Declarations. 3. You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of on a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim for the additional coverage this Optional Coverage provides if you notify us of your intent to do so within 180 days after the loss or damage. 4. We will not pay on a replacement cost basis for any loss or damage: a. Until the lost or damaged property is actually repaired or replaced; and b. Unless the repairs or replacement is made as soon as reasonably possible after the loss or damage. 5. We will not pay more for loss or damage on a replacement cost basis than the least of a., b. or c., subject to Paragraph 6. below: a. The Limit of Insurance applicable to the lost or damaged property; b. The cost to replace, on the same premises, the lost or damaged property with other property: (1) Of comparable material and quality; and (2) Used for the same purpose; or c. The amount you actually spend that is necessary to repair or replace the lost or damaged property. If a building is rebuilt at a new premises, the cost described in Paragraph b. is limited to the cost which would have been incurred if the building had been rebuilt at the original premises. 6. The cost of repair or replacement does not include the increased cost attributable to enforcement of any ordinance or law regulating the construction, use or repair of any property. G. Definitions 1. "Fungi" means any type or form of fungus, including mold or mildew and any mycotoxins, spores, scents or by-products produced or released by fungi. 2. "Pollutants" means any solid, liquid, gaseous, or thermal irritant or contaminant including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes material to be recycled, reconditioned or reclaimed. 3. "Stock" means merchandise held in storage or for sale, raw materials and in-process or finished goods, including supplies used in their packing or shipping. 4. "Water damage" means: a. Flood, surface water, waves (including tidal wave and tsunami), tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind (including storm surge); b. Mudslide or mudflow; c. Water that backs up or overflows or is otherwise discharged from a sewer, drain, sump, sump pump or related equipment; Page 8 of 9 Insurance Services Office, Inc., 2009 IH

19 d. Water under the ground surface pressing on, or flowing or seeping through: (1) Foundations, walls, floors or paved surfaces; (2) Basements, whether paved or not; or (3) Doors, windows or other openings; or e. Waterborne material carried or otherwise moved by any of the water referred to in Paragraph a., c. or d., or material carried or otherwise moved by mudslide or mudflow. IH Insurance Services Office, Inc., 2009 Page 9 of 9

20 COMMERCIAL INLAND MARINE CONDITIONS The following conditions apply in addition to the Common Policy Conditions and applicable Additional Conditions in Commercial Inland Marine Coverage Forms: LOSS CONDITIONS A. Abandonment There can be no abandonment of any property to us. B. Appraisal If we and you disagree on the value of the property or the amount of loss, either may make written demand for an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the value of the property and amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will: 1. Pay its chosen appraiser; and 2. Bear the other expenses of the appraisal and umpire equally. If there is an appraisal, we will still retain our right to deny the claim. C. Duties In The Event Of Loss You must see that the following are done in the event of loss or damage to Covered Property: 1. Notify the police if a law may have been broken. 2. Give us prompt notice of the loss or damage. Include a description of the property involved. 3. As soon as possible, give us a description of how, when and where the loss or damage occurred. 4. Take all reasonable steps to protect the Covered Property from further damage, and keep a record of your expenses necessary to protect the Covered Property, for consideration in the settlement of the claim. This will not increase the Limit of Insurance. However, we will not pay for any subsequent loss or damage resulting from a cause of loss that is not a Covered Cause of Loss. Also, if feasible, set the damaged property aside and in the best possible order for examination. 5. You will not, except at your own cost, voluntarily make a payment, assume any obligation, or incur any expense without our consent. 6. As often as may be reasonably required, permit us to inspect the property proving the loss or damage and examine your books and records. Also permit us to take samples of damaged and undamaged property for inspection, testing and analysis, and permit us to make copies from your books and records. 7. We may examine any insured under oath, while not in the presence of any other insured and at such times as may be reasonably required, about any matter relating to this insurance or the claim, including an insured's books and records. In the event of an examination, an insured's answers must be signed. 8. Send us a signed, sworn proof of loss containing the information we request to settle the claim. You must do this within 60 days after our request. We will supply you with the necessary forms. 9. Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or suit. 10. Cooperate with us in the investigation or settlement of the claim. D. Insurance Under Two Or More Coverages If two or more of this policy's coverages apply to the same loss or damage, we will not pay more than the actual amount of the loss or damage. E. Loss Payment 1. We will give notice of our intentions within 30 days after we receive the sworn proof of loss. 2. We will not pay you more than your financial interest in the Covered Property. 3. We may adjust losses with the owners of lost or damaged property if other than you. If we pay the owners, such payments will satisfy your claim against us for the owners' property. We will not pay the owners more than their financial interest in the Covered Property. 4. We may elect to defend you against suits arising from claims of owners of property. We will do this at our expense. CM ISO Properties, Inc., 2003 Page 1 of 3

21 5. We will pay for covered loss or damage within 30 days after we receive the sworn proof of loss if you have complied with all the terms of this Coverage Part and: a. We have reached agreement with you on the amount of the loss; or b. An appraisal award has been made. 6. We will not be liable for any part of a loss that has been paid or made good by others. F. Other Insurance 1. You may have other insurance subject to the same plan, terms, conditions and provisions as the insurance under this Coverage Part. If you do, we will pay our share of the covered loss or damage. Our share is the proportion that the applicable Limit of Insurance under this Coverage Part bears to the Limits of Insurance of all insurance covering on the same basis. 2. If there is other insurance covering the same loss or damage, other than that described in 1. above, we will pay only for the amount of covered loss or damage in excess of the amount due from that other insurance, whether you can collect on it or not. But we will not pay more than the applicable Limit of Insurance. G. Pair, Sets Or Parts 1. Pair Or Set In case of loss or damage to any part of a pair or set we may: a. Repair or replace any part to restore the pair or set to its value before the loss or damage; or b. Pay the difference between the value of the pair or set before and after the loss or damage. 2. Parts In case of loss or damage to any part of Covered Property consisting of several parts when complete, we will only pay for the value of the lost or damaged part. H. Recovered Property If either you or we recover any property after loss settlement, that party must give the other prompt notice. At your option, the property will be returned to you. You must then return to us the amount we paid to you for the property. We will pay recovery expenses and the expenses to repair the recovered property, subject to the Limit of Insurance. I. Reinstatement Of Limit After Loss The Limit of Insurance will not be reduced by the payment of any claim, except for total loss or damage of a scheduled item, in which event we will refund the unearned premium on that item. J. Transfer Of Rights Of Recovery Against Others To Us If any person or organization to or for whom we make payment under this Coverage Part has rights to recover damages from another, those rights are transferred to us to the extent of our payment. That person or organization must do everything necessary to secure our rights and must do nothing after loss to impair them. But you may waive your rights against another party in writing: 1. Prior to a loss to your Covered Property. 2. After a loss to your Covered Property only if, at time of loss, that party is one of the following: a. Someone insured by this insurance; or b. A business firm: (1) Owned or controlled by you; or (2) That owns or controls you. This will not restrict your insurance. GENERAL CONDITIONS A. Concealment, Misrepresentation Or Fraud This Coverage Part is void in any case of fraud, intentional concealment or misrepresentation of a material fact, by you or any other insured, at any time, concerning: 1. This Coverage Part; 2. The Covered Property; 3. Your interest in the Covered Property; or 4. A claim under this Coverage Part. B. Control Of Property Any act or neglect of any person other than you beyond your direction or control will not affect this insurance. The breach of any condition of this Coverage Part at any one or more locations will not affect coverage at any location where, at the time of loss or damage, the breach of condition does not exist. C. Legal Action Against Us No one may bring a legal action against us under this Coverage Part unless: 1. There has been full compliance with all the terms of this Coverage Part; and 2. The action is brought within 2 years after you first have knowledge of the direct loss or damage.

22 D. No Benefit To Bailee No person or organization, other than you, having custody of Covered Property will benefit from this insurance. E. Policy Period, Coverage Territory We cover loss or damage commencing: 1. During the policy period shown in the Declarations; and 2. Within the coverage territory. F. Valuation The value of property will be the least of the following amounts: 1. The actual cash value of that property; 2. The cost of reasonably restoring that property to its condition immediately before loss or damage; or 3. The cost of replacing that property with substantially identical property. In the event of loss or damage, the value of property will be determined as of the time of loss or damage.

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27 COMMERCIAL INLAND MARINE SIM POLICY NUMBER: FDA THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDMENT OF DIFFERENCE IN CONDITIONS COVERAGE FORM - COLLAPSE This endorsement modifies insurance provided under the following: DIFFERENCE IN CONDITIONS COVERAGE FORM Section A. COVERAGE is amended to include the following: 4. Additional Coverages f. Collapse (1) We will pay for direct physical loss or damage caused by collapse of a building insured under this policy, if the collapse is caused by one or more of the following: (a) The specified cause of loss: or breakage of building glass, but only as insured against under this policy; (b) Hidden decay; (c) Hidden insect or vermin damage; (d) Weight of people or personal property; (e) Weight of rain that collects on a roof; (f) Use of defective material or methods in construction, remodeling or renovation, if the collapse occurs during the course of construction, remodeling or renovation. (2) With respect to the following property: (a) Outdoor radio or television antennas (including satellite dishes) and their lead-in wiring, masts or towers; (b) Awnings, gutters and downspouts; (c) Yard fixtures; (d) Outdoor swimming pools; (e) Fences; (f) Bulkheads, pilings, piers, wharves and docks; (g) Beach or diving platforms or appurtenances; (h) Retaining walls; and (i) Walks, roadways and other paved surfaces; If the collapse is caused by a cause of loss listed in 4.f. (1)(b) through 4.f. (1)(f), we will pay for Loss to that property only if: (a) Such loss or damage is a direct result of the collapse of a building insured under this policy; and (b) The property is Covered Property under this policy. SIM Companion Specialty Insurance Company, 2010 Includes copyrighted material of Insurance Services Office, Inc., with its permission Page 1 of 2

28 COMMERCIAL INLAND MARINE SIM (3) Collapse means an abrupt or complete falling down or caving of a building or any part of a building with the result that the building or part of the building cannot be occupied for its intended purpose. A building or any part of a building that is in imminent danger of collapse is not considered to be in a stat of collapse. A building that is standing or any part of a building that is standing is not considered to be in a stat of collapse even if it: (a) Has separated from another part of a building; or (b) Shows evidence of decay, insect, or vermin damage, cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion. (4) Specified causes of loss, means the following, but only to the extent these Causes of Loss are covered causes of loss under this policy and notwithstanding that any of the following may otherwise be excluded under Section B. Exclusions. (a) Explosion (b) Vehicles (c) Vandalism (d) Leakage from fire extinguishing equipment, other than an automatic sprinkler system; (e) Falling objects, but in this cause of loss does not apply to: (1) Personal property in the opening; or (2) The interior of a building or structure, or property, inside a building or structure, unless the roof or an outside wall of the building is first damaged by the falling object. (f) Weight of snow, ice or sleet; (g) Water damage, meaning the accidental discharge or leakage of water or steam as the direct result of the breaking or cracking of any part of a system or appliance containing water or steam. SIM Companion Specialty Insurance Company, 2010 Includes copyrighted material of Insurance Services Office, Inc., with its permission Page 1 of 2

29 COMMERCIAL INLAND MARINE SIM POLICY NUMBER: FDA THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. AMENDMENT OF DIFFERENCE IN CONDITIONS COVERAGE FORM EARTH MOVEMENT EXCLUSION This endorsement modifies insurance provided under the following: DIFFERENCE IN CONDITIONS COVERAGE FORM Section B. EXCLUSIONS, 2. is amended to include the following: r. Earth Movement (1) Earthquake, including any earth sinking, rising or shifting related to such an event; (2) Landslide, including any earth sinking, rising or shifting related to such an event; (3) Mine subsidence, meaning subsidence of a man-made mine, whether or not mining activity has ceased; (4) Volcanic eruption, explosion or effusion. Volcanic Action meaning direct loss or damage resulting from the eruption of a volcano when loss or damage is caused by: (a) Airborne volcanic blast or airborne shock waves; (b) Ash, dust or particulate matter; or (c) Lava flow. (5) Earth sinking, including sinkhole collapse, rising or shifting including soil conditions which cause settling, cracking or other disarrangement of foundations or other parts of realty. Soils conditions include contraction, expansion, freezing, thawing, erosion, improperly compacted soil and the action of water under the ground surface. Sinkhole collapse means loss or damage caused by the sudden sinking or collapse of land into underground empty spaces created by the action of water on limestone or similar rock formations. SIM Companion Specialty Insurance Company, 2010 Includes copyrighted material of Insurance Services Office, Inc., with its permission Page 1 of 1